DAX Outperforms in Europe

The DAX 40 closed about 0.2% up at 25,040 after a choppy session on Wednesday, extending the prior session's gains and outperforming regional peers. Defense stocks led gains, with Rheinmetall up 6.1% after reports that Germany plans to partner with the US to boost domestic weapons production. Renk (+4.7%) and Hensoldt (+4.4%) also advanced solidly. Other top performers included SAP (+5.2%), Scout24 (+3.7%), Fresenius SE & Co (+2.7%), while Infineon Technologies (-4.2%), Siemens (-2.6%) and Hochtief (-2.4%) lagged. At the ECB’s Sintra Forum, ECB President Christine Lagarde noted that risks to inflation and growth in the euro area have become less pronounced, while Fed Chair Kevin Warsh highlighted lower inflation risks.

The DAX Index gained 44 points or 0.18 percent on Wednesday to close at 25040 points. Gains were led by Rheinmetall (6.06%), SAP (5.25%) and Fresenius (2.65%). Biggest losers were Infineon (-4.21%), Siemens (-2.39%) and E.ON (-2.02%).

The DAX 40 swung between small gains and losses in the first trading session of July, as investors locked in profits following a robust Q2 performance while maintaining a cautious stance. The AI-driven tech rally lost momentum, and peace talks between the US and Iran hit a new stalemate after Tehran refused direct talks in Doha. Meanwhile, all eyes are on Sintra, where speeches by Fed President Kevin Warsh and ECB President Christine Lagarde are expected later in the day. AI-related stocks, retailers, and banks were among the hardest hit, while defense stocks led gains. Top losers included Siemens, Infineon Technologies, Siemens Energy and Vonovia, down more than 2% each. Adidas fell 1.6%, tracking losses from US competitor Nike, which flagged a cautious revenue outlook. Conversely, Rheinmetall shares stood out with a nearly 4% gain amid reports that Germany aims to expand domestic weapons production.